Posted by forex at 8:55 AM
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Getting Started
1. Determine the digital currency market segment you will serve, such as patrons of online casinos and games, online retailers and buyers or investors. Draft a business plan that details the DGCs and DCs in which you will trade, such as gold-backed Pecunix, and how the exchange will profit from trades. Most currency exchanges profit from trades by charging a commission or by buying digital currencies for less than their market value.
2. Research local, national and global laws and regulations regarding digital currency exchanges, then write a compliance plan. A district attorney in New York, for example, closed a digital currency exchanger in 2006 because the business did not have a money transmitter license, according to 'eCommerce Journal.' Digital currency exchanges are self-regulating, which means no central rules govern them, though trade organizations such as the GDCA arbitrate disputes, fights fraud and accredits member exchanges.
3. Secure a domain name for the exchange, then begin building a web presence with a public area as well as a secure, members-only area to execute trades. The public area should include current financial data for gold and the hard currencies which back the digital currencies customers will be able to trade on your exchange, as well as your pricing structure for trades. The London Gold Exchange, for example, does not charge its members to buy the currency Global Digital Pay, though the exchange allows members to sell it at 6 percent less than its market value; conversely, the exchange Asiana Gold charges a flat fee for all transactions.
4. Attain third-party accreditation or certification as a reputable digital currency market. In new and self-regulating industries, a company's reputation is essential to its success, so partner with organizations such as the GDCA to add credence to your market. Currencies such as GDP also validate the credentials of their account-holders by providing the name and status of each registered account, as well as the date it was created.
Running the Exchange
5. Network with other digital currency exchangers by attending conferences or joining professional organizations, such as GDCA, then market your exchange through social and professional connections, as well as by advertising. Aim your advertising efforts at the media outlets your target market segment is most likely to view, such as digital gaming forums and industry news websites, as well as online publications such as 'DGC Magazine.' Register with directories and indices of reputable digital currency exchangers, such as eCurrencyLinks.com, in order to generate traffic to your exchange.
6. Entice customers and earn their loyalty by offering free information, education and guides regarding the digital currency marketplace. Digital currency exchange firms are market makers, which means they are creating a new realm for commerce; offer free education and orientation materials to new customers to welcome them to a type of economy with which they might not be familiar. Address points such as the validity of digital currencies, the different types of digital currencies and their myriad uses.
7. Expand your market share by offering fair rates of exchange---even discounts for higher-volume trades---to your clients. If a dispute with a client arises, arbitrate in through GDCA, making every effort to positively resolve the issue; doing so is not only good business, it will also maintain your exchange's reputation and accreditation.